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Gold/Mining/Energy : Diamonds North Resources Ltd -- Ignore unavailable to you. Want to Upgrade?

To: Rory McLeod who wrote (32)	10/23/2002 12:37:26 AM
From: Gord Bolton	Respond to of 334

FOR: CANABRAVA DIAMOND CORPORATION TSX VENTURE SYMBOL: CNB AND DIAMONDS NORTH RESOURCES LTD. TSX VENTURE SYMBOL: DDN OCTOBER 22, 2002 - 09:01 EDT Canabrava Diamond Corporation and Diamonds North Resources Ltd.: Macrodiamonds Recovered, King Eider Kimberlite Pipe, Hadley Bay Project, Victoria Island VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation (CNB-TSX Venture) and Diamonds North Resources Ltd. (DDN-TSX Venture) announced today that macrodiamonds have been recovered from each of the first three kimberlite samples processed from the King Eider kimberlite pipe, Hadley Bay Project, Victoria Island. The King Eider kimberlite is part of a diamondiferous cluster, which includes the Jaeger, Turnstone, Sanderling and Pintail kimberlites. These diamond samples were all recovered from -50 degree inclined drill hole HD02-12 that intersected multiple phases of kimberlite in more than 100 metres of core. The core was separated into five sub-samples representing each of these kimberlite phases. The results from the first three samples processed are listed in Table 1. /T/ Table 1. Diamond Results King Eider Kimberlite Sample Depth Weight Diamonds Recovered Number Down Hole (kilograms) +0.5 mm +1.0 mm (metres) Total 1 Axis 2 Axes 1 Axis 2 Axes ------------------------------------------------------------------------ CNB01017 5.5 - 26 67.3 5 4 0 0 1 CNB01018 31 - 50 58.2 8 1 0 0 0 CNB01020 79 - 101 68.0 25 7 4 0 1 ------------------------------------------------------------------------ /T/ Macrodiamonds are present in all three samples, with the largest stone recovered from sample CNB01017. This stone has three dimensions exceeding one millimetre: 1.17x1.17x1.13 millimetres. Sample CNB01020 produced the second largest stone with dimensions: 1.45x1.20x0.66 millimetres. All three samples are classified as hypabyssal facies macrocrystic kimberlite. The detailed diamond recoveries in the individual square mesh screen categories are listed in Table 2. /T/ Table 2. Diamond Results King Eider Kimberlite Square Mesh Number of Diamonds Recovered Sieve Size CNB01017 (67.3 kg) CNB01018 (58.2 kg) CNB01020 (68.0 kg) ----------------------------------------------------------------------- +0.850 mm 1 0 1 +0.600 mm 0 0 0 +0.425 mm 1 0 5 +0.300 mm 0 1 1 +0.212 mm 1 3 4 +0.150 mm 2 3 6 +0.100 mm 0 1 8 ----------------------------------------------------------------------- Total Stones 5 8 25 ----------------------------------------------------------------------- /T/ Canabrava President George Read states, "We are very encouraged by these results, particularly the macrodiamond recoveries. Based on these results, the King Eider kimberlite requires further evaluation." Results are pending from two samples from drill hole HD02-12 (95.4 and 60.7 kilograms) and one sample from adjacent drill hole HD02-13 (40.3 kilograms). The King Eider kimberlite pipe was originally located using airborne geophysics and a recent detailed ground geophysical survey, carried out prior to drilling, has shown that King Eider is a large complex kimberlite. The magnetic anomaly measures 200 by 300 metres. The detailed geophysical survey, the core logging and diamond analysis indicate that King Eider is composed of multiple diamondiferous kimberlite phases. Mark Kolebaba, President of Diamonds North states, "We are encouraged by the diamond size distribution in a pipe of this dimension." In light of the demonstrated potential for eclogitic diamonds in the Victoria Island kimberlites the sample sizes were maximized and virtually all core has been submitted for diamond processing. Representative samples of each lithological type have been retained for petrography and indicator mineral recovery. Kimberlite drill core was logged and sampled in secure facilities in the field camp. Sample bags were placed in solid, sealed containers and shipped by air to SGS Lakefield Research in Ontario. SGS Lakefield's standard caustic fusion diamond recovery method was used for all samples. SGS Lakefield is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 Standard for specific registered tests. Canabrava has the option to earn a 50 percent interest in Diamonds North's Hadley Bay Diamond Project by spending $5 million and issuing 250,000 shares to Diamonds North over a four-year period. Diamonds North is the Project operator. Canabrava Diamond Corporation is actively exploring for diamonds in Canada and Brazil both independently and through major joint ventures with Diamonds North Resources Ltd., Kennecott Canada Exploration Inc., Majescor Resources Inc., Navigator Exploration Corp., and Paramount Ventures and Finance Inc. The Company is 36.2 percent owned by Southwestern Resources Corp. Diamonds North Resources Ltd. is a diamond exploration company with eight projects covering over one million acres of land in Canada's Nunavut and Northwest Territories. Six projects are located on Victoria Island; one project is adjacent to the De Beers/Mountain Province Kennady Lake advanced stage discovery and one project is near the Drybones kimberlite in the Northwest Territories. -30-